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In Samoa the Opportunity Cost of Producing 1 Coconut Is

Question 30

Multiple Choice

In Samoa the opportunity cost of producing 1 coconut is 4 pineapples, while in Guam the opportunity cost of producing 1 coconut is 5 pineapples. In this situation:


A) ​if trade occurs, both countries will be able to consume beyond their original production possibilities frontiers.
B) ​Guam will be better off if it exports coconuts and imports pineapples.
C) ​both Samoa and Guam will be better off if Samoa produces both coconuts and pineapples.
D) ​mutually beneficial trade cannot occur.

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